Independent research published today by the British Insurance Brokers Association has revealed that 72% of customers who recently bought travel insurance, from a travel agent or tour operator, had not been advised whether terrorism cover was included in their policy.
The survey, conducted by Populus, also found that 97% of consumers would wholeheartedly back proposals from the Government to protect them from agents who fail to explain the full details of their travel insurance policies.
The research follows the launch of a Government inquiry into the sale of travel insurance as part of a holiday package, which is exempt from regulatory controls.
The research also showed that:
• 45% of travel agents andtour operators failed to advise of the policy excess
• 56% failed to advise on how to make a complaint
• only 47% of customers read the small print when buying insurance from a travel agent or tour operator
• 42% of consumers who bought policies from travel agents and tour operators were advised about hazardous sports compared to 67% from insurance brokers and an average of the FSA regulated insurance market of 62%
• 44% of travel agents and tour operators explained how to go about making a claim, compared with 69% from insurance brokers and an average from the FSA regulated market of 62%
• 46% of travel agents/tour operators gave advice about policy limits in comparison with an average of 68% of regulated firms.
BIBA chief executive Eric Galbraith said: “Travel insurance is vital when we jet off on our holidays, and it is the role of the provider to ensure that consumers are both fully covered and understand the limits of their policies.
“BIBA brokers, and the rest of the regulated industry has been fulfilling this commitment for years, and the Government’s proposals would ensure that travel agents and tour operators fall into line.
“BIBA fully supports the Government’s work in this area, and will continue to campaign to ensure that all customers are treated fairly.”
By Bev Fearis
